U.S. Treasury Secretary Janet Yellen said on Monday that the U.S. financial system was functioning in an "orderly manner" despite recent market volatility, and valuations of some assets remain high compared to historical values.

In prepared testimony for a U.S. Senate Banking Committee hearing on Tuesday, Yellen said that the Financial Stability Oversight Council will continue to monitor developments related to the war in Ukraine and continued struggles against the coronavirus pandemic.

"There is the potential for continued volatility and unevenness of global growth as countries continue to grapple with the pandemic," Yellen said. "Russia’s unprovoked invasion of Ukraine has further increased economic uncertainty."